Answer:
Overhead absorption rate = Budgeted overhead
Budgeted machine hours
= $36,000/90,000 hrs
= $0.4 per machine hour
The amount of manufacturing overhead to be allocated to the job
= $0.4 x 900 machine hours
= $360
Explanation:
There is need to calculate the overhead absorption rate which is budgeted manufacturing overhead divided by budgeted activity level.
Then, we will multiply the overhead absorption rate by the actual machine hours of 900 hours.
Answer:
The cheapest option would be to purchase the large computer right away at 9,000 pounds. Even though the other options require a lower initial investment, the probability of needing a large computer in the future is very high and the cost of either acquiring a new computer or expanding an existing one is higher.
Explanation:
Since there is not enough room here I attached the decision tree.
Answer:
SUBSTITUTION BIAS
Explanation:
The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. It is calculated by taking price changes for each item in the predetermined basket of goods and averaging them.
The substitution bias is a weakness in the Consumer Price Index that overstates inflation because it does not account for the substitution effect, when consumers choose to substitute one good for another after its price becomes cheaper than the good they normally buy.
Samantha decides to buy some peppermint because of the 15% inflation on the price of ginger ale, therefore, this situation is most relevant to SUBSTITUTION BIAS in the construction of CPI.
Which of the following items determine your preference for a ticket
Answer:
a. When must Janine recognize the income from the $17,360 advance payment for services if she uses the cash method of accounting?
Cash method of accounting recognizes revenues and expenses when they are received or paid for.
b. When must Janine recognize the income from the $17,360 advance payment for services if she uses the accrual method of accounting?
c. Suppose that instead of services, Janine received the payment for a security system (inventory) that she will deliver and install in year 2. When would Janine recognize the income from the advance payment for inventory sale if she uses the accrual method of accounting and she uses the deferral method for reporting income from advance payments? For financial accounting purposes, she reports the income when the inventory is delivered.
She will recognize revenue only after the merchandise is delivered.
d. Suppose that instead of services, Janine received the payment for the delivery of inventory to be delivered next year. When would Janine recognize the income from the advance payment for sale of goods if she uses the accrual method of accounting and she uses the full-inclusion method for advance payments?
Under this system, advanced payments are considered revenue on the year that they were received.
